Section of 195 of income tax
This query is : Resolved
23 April 2023
Section 195 of the Income Tax Act, 1961 lays down provisions for tax deductions for Non-Resident Indians (NRIs). This section focuses on tax rates and deductions on daily business transactions with a non-resident. Any amount generated through these business transactions is chargeable under Income Tax Act, 1961. This amount may or may not be income or profits. The certificate for remittance is compulsory.
Section 195 further mentions guidelines on avoiding a revenue loss arising out of a tax liability from a non-resident by the way of deducting the same amount from their payments at source. The payer, that is, the person remitting payments to a NRI, can any individual, Indians and international companies, Hindu Undivided Family (HUF), person with exempt income in India and juristic person with or without an income that is chargeable to tax in India. The payee, under Section 195, is any non-resident with a residential status that comes under the purview of Section 6 of the Income Tax Act, 1961.
For details refer: https://taxguru.in/income-tax/section-195-tds-non-resident-payments.html
Section 195 further mentions guidelines on avoiding a revenue loss arising out of a tax liability from a non-resident by the way of deducting the same amount from their payments at source. The payer, that is, the person remitting payments to a NRI, can any individual, Indians and international companies, Hindu Undivided Family (HUF), person with exempt income in India and juristic person with or without an income that is chargeable to tax in India. The payee, under Section 195, is any non-resident with a residential status that comes under the purview of Section 6 of the Income Tax Act, 1961.
For details refer: https://taxguru.in/income-tax/section-195-tds-non-resident-payments.html
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- ITDS U/S.194T of Firm
- Unregistered suppliers utility
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- Cash balance limit and property purchases limit
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- Journal entry of busniess expenses
- FCRA 6 E- Intimation
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
